Olga is the proprietor of a little company. In 2018, thebusiness"s income, prior to consideration of any type of price recovery or §179 deduction, is $250,000. Olga spends $620,000 on brand-new 7-yearclass assets and also elects to take the § 179 deduction on them. Shedoes not case any type of obtainable added first-year depreciation.Olga"s expense recovery deduction for 2018, other than for the costrecoextremely via respect to the brand-new 7-year assets, is $95,000.
You are watching: Olga is the proprietor of a small business
If forced, round your answers to the nearemainder dollar.
a. What is the tentative amount of Olga"sin its entirety § 179 deduction for the seven-year class assets before anyearnings limitation?$
b. The complete amount of Olga"s § 179 deductionfor the seven-year course assets after any kind of income limitation is$.
c. Olga"s full cost recoincredibly depreciationdeduction (consisting of any § 179 deduction) is $.
d.
See more: What Might An Envious Character Do, 5 Telltale Signs That You’Re The Target Of Envy
What is the amount of any kind of § 179carryforward?$
Click here to accessibility the depreciation table to use forthis problem.
Exhibit 5.6
MACRS Straight-Line Depreciation for Real Property AssumingMid-Month Convention

1 | 3.485 | 3.182 | 2.879 | 2.576 | 2.273 | 1.970 | 1.667 | 1.364 | 1.061 | 0.758 | 0.455 | 0.152 |
2–18 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 |
19–27 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 |
28 | 1.970 | 2.273 | 2.576 | 2.879 | 3.182 | 3.485 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 |
29 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.152 | 0.455 | 0.758 | 1.061 | 1.364 | 1.667 |
1 | 3.042 | 2.778 | 2.513 | 2.249 | 1.984 | 1.720 | 1.455 | 1.190 | 0.926 | 0.661 | 0.397 | 0.132 |
2–19 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 |
20–31 | 3.174 | 3.174 | 3.174 | 3.174 | 3.174 | 3.174 | 3.174 | 3.174 | 3.174 | 3.174 | 3.174 | 3.174 |
32 | 1.720 | 1.984 | 2.249 | 2.513 | 2.778 | 3.042 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 |
33 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.132 | 0.397 | 0.661 | 0.926 | 1.190 | 1.455 |
1 | 2.461 | 2.247 | 2.033 | 1.819 | 1.605 | 1.391 | 1.177 | 0.963 | 0.749 | 0.535 | 0.321 | 0.107 |
2–39 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 |
40 | 0.107 | 0.321 | 0.535 | 0.749 | 0.963 | 1.177 | 1.391 | 1.605 | 1.819 | 2.033 | 2.247 | 2.461 |